San Francisco is preparing a full-court press on Washington to battle for billions in federal stimulus money for local projects, Mayor Gavin Newsom said Feb. 23. Other Bay Area cities, Oakland and Berkeley, also plan to fight for some of the $787 billion in federal money.
Newsom said San Francisco can’t afford to wait, and city department heads could be flying to the capitol as soon as Feb. 27 to request money. A good chunk of President Obama's stimulus package is competitive funding, so cities and counties across the country will have to battle to decide who gets what.
"The vast majority of the money will be spoken for in the next few weeks. We want to be out in front of this," Newsom said.
In a meeting with department leaders Feb. 23, Newsom said going after federal stimulus money is a top priority. "Set aside whatever responsibilities you have—you're going to Washington," Newsom said he told city administrators.
Most of the federal money will be allocated automatically based on the size of a city or county, or doled out through the state in the form of money for schools or health care. But an as-yet-undetermined amount of the stimulus money will be granted on an application basis.
Oakland Mayor Ron Dellums and a city-paid lobbyist have been working to get a portion of the stimulus funding. Dellums was in Washington last week and met with Obama with other big-city mayors, including Newsom.
San Francisco also has capital improvement projects, including replacing Doyle Drive and building the Transbay Terminal, slated for possible federal stimulus funding, Newsom said.
The city is facing an unprecedented budget deficit for next year, and the potential for "tens of millions" in stimulus money couldn't come at a better time, Newsom said. On Feb. 20, department heads submitted plans to cut their budgets by 25% for next year, and Newsom is expected to announce new layoffs.
Dr. Mitch Katz, head of the city's Public Health Department, was asked to cut $100 million from his budget, but new federal aid from the stimulus plan could grant $30 million to the department, helping to save some services, he said.
